ABSTRACT: China's new Anti-Monopoly Law (AML), over two decades in the making,
was finally enacted on August 30, 2007 and on August 1, 2008 will
replace the disparate and ineffective competition regime currently in
place. Legislators invited the input of a wide array of domestic and
foreign legal experts and business interests, as well as Chinese
government agencies of all levels. While the new law borrows much of
its wording from the competition law of the European Union and United
States, it also retains unmistakably Chinese characteristics.

In addition to unifying existing prohibitions against a range of
abusive trade practices, the AML consolidates the enforcement apparatus
and strengthens the regulatory framework for both public and private
domestic monopolistic acts. The new system reflects a range of
divergent policy goals that combine protectionist sentiment with the
desire to promote competition even at significant political cost. While
the AML may lead to genuine progress, it could also easily serve as a
means of perpetuating discriminatory treatment and an ineffective
weapon against abuses by State-owned enterprises, administrators and
trade unions.

The prospects for effective and equitable enforcement of the new
system will require the time to develop a body of jurisprudence on
competition law, the fortitude to combat regional administrative abuses
and the passage of sound implementing measures to fill in gaps in the
upcoming law. The AML has achieved the initial goal of establishing a
solid foundation for Chinese competition policy, but fulfilling the
promise of this historic step will only be possible through a massive
and continued effort by a great many dedicated people over the course
of many years. However, considering the economic progress and
governmental reform China has achieved over the last generation, the
demonstration of such will and capability are well within its reach.